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Negative Results in First Half 2010 for Regus

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Regus, the world's largest provider of executive suites, realesed its half year results today for the six months ended June 30, 2010.

Highlights compared with same period in 2009:

  • Revenue down by 7.5%
  • Earning per share down by 76% (prior to exceptional charges)
  • A before tax loss of £6.1 million (H1 2009: Profit £69.0 million) After exceptional UK restructuring charge of £15.8 million
  • Workstation increase of 1.8% to 176,760
  • 44 new centers opened
  • Businessworld - increase of 111% to 475,896 members ( 127% increase in revenues from 2009)
  • Cash generated from operations (before exceptional items) £47.1m* (H1 2009: £62.2m)
  • Net cash at £224.2m (H1 2009: £229.5m)
  • Interim dividend up 6% to 0.85p per share (H1 2009: 0.8p)

Commenting on today's announcement Mark Dixon, Chief Executive Officer of Regus plc, said:

"Despite the challenging trading environment I am pleased that we continue to generate cash, deliver cost savings and open new centres on attractive deals. While the market remains difficult to predict, we remain committed to our strategy of  restoring our margins by both driving up our revenues and progressively reducing cost while continuing  to maximise growth opportunities as changes in how and where we work evolve."

The good news for Regus is that they have cash, £224.2m, to continue their expansion plans which are to "open a centre per day over the remainder of the year." According tot he report Regus is focused on reducing risk through variable rent arrangements that combine operational flexibility for both landlords and for Regus - minimizing risks inherent with longer, more conventional leases.

The really bad news is that their stock prices have plummeted:

The bottom line is that Regus is suffering along with the rest of the worldwide commercial real estate market.

Executive Suites , Flexible Workspace

1 response to “Negative Results in First Half 2010 for Regus”

  1. TopNews Says:
    The office rental company Regus has reported a pre tax loss in the first six months of this year as it was hit by 15.8 million pounds of restructuring costs in the UK.

    The company has reported a pre tax loss of 6.1 million pounds in the six months till the end of June compared to a profit of 69 million pounds in the same time period before a year. But the company has said that it is going to open new centers despite of the difficult and challenging economic environment.

    The revenues of the company has also fallen down by 7.5% and slipped down to 515.5 million pounds. The firm Regus rents out ready to use offices for a long and short period of time. Despite of the loss the company has announced to raise its dividend from 0.8 pence per share to 0.85 pence per share.